The project is receiving $206 million from CanAm Enterprises through the federal green card program known as EB-5. If the project doesn't create the jobs and economic viability it promises, the EB-5 investors who have not yet received their green cards would be denied them, according to the United States Citizenship and Immigration Services Department (USCIS).

"If a regional center (RC) under the EB-5 program no longer serves the purpose of promoting economic growth, including increased export sales, improved regional productivity, job creation and increased domestic capital investment, USCIS regulations provide a process through which USCIS can terminate the RC designation," said Katie Tichacek, USCIS public affairs officer, noting that an RC is a USCIS-designated organization that sponsors capital investment projects by EB-5 investors.

"When a Notice of Termination is issued, any pending Immigrant Petitions by an Alien Entrepreneur (Form I-526) associated with that RC will be denied or revoked. Alien investors who have already obtained LPR (Legal Permanent Resident) status (a green card) are not affected," she added.

A NY Wheel spokeswoman couldn't immediately say how many, if any, CanAm Enterprises investors have received their green cards.

JOBS ALREADY CREATED

However, Randy Mastro, an attorney for the NY Wheel, and Walter Gindin, director of in-house immigration counsel for CanAm Enterprises, said the project is on track and "thousands" of EB-5 jobs have already been created.

"First and foremost, the developer is committed to completing the Wheel and has thus far invested over $400 million in a project of which the Wheel is the centerpiece, including building a multi-million dollar terminal building, a large parking garage and numerous road improvements for Staten Island's North Shore," said Mastro.

"The construction (of the above-mentioned structures) continues unabated and according to CanAm has already created thousands of EB-5 Program qualifying jobs for EB-5 investors and furthermore, CanAm anticipates the project will create significantly more qualifying EB-5 Program jobs than expected as this work progresses," he added.

Mastro also defended the NY Wheel's decision to fire its contractor.

"The developer's decision to terminate the design/build team, Mammoet-Starneth LLC, was the responsible and necessary step to ensure that the project had the best chance to be completed in an expeditious manner. Simply put, the developer terminated Mammoet because of its lack of commitment to finishing the project," said Mastro.

Theo Kroese, a Holland-based company spokesman for Mammoet-Starneth, has refused comment.

SEEKING A NEW CONTRACTOR

Mastro said the NY Wheel is actively seeking a new contractor.

"The developer is in active discussions with highly qualified replacement contractors, but cannot comment further at this time, as sensitive negotiations are ongoing," said Mastro.

However, he couldn't yet give a timeline for completion of the project.